Cboe Global Markets has reported strong earnings results from Q2, reflecting an increase in derivatives markets and data and access solutions net revenues. These were offset partially by declines in North American equities, Europe and Asia Pacific and futures business segments.
The trading venue achieved a net revenue of $467.1 million in Q2 2023, up 10% compared to the same period last year.
Within its various business segments, Cboe Global Markets saw year-on-year increases in both options and global FX.
Options saw the biggest percentage change, achieving $283.2 million, up 20% from 235.3 million in Q2 2022. Cboe attributed the growth to a double-digit increase in net transaction and clearing fees as well as growth in market data and access and capacity fees.
Meanwhile, global FX revenues rose by 7% year-on-year, totalling $17.8 million last quarter, which was primarily driver by higher net transaction fees.
Cboe Global Markets did, however, experience declines in revenues among its North American equities, Europe and Asia Pacific, and futures business segments, albeit by single digit percentages.
North American equities net revenues declined by 2% year-on-year, totalling $90.8 million, which reflected lower net transaction and clearing fees, and industry market data.
Europe and APAC net revenues decreased by 5% to $47.3 million, reflecting slower industry volumes.
Elsewhere, futures net revenue declined partially by 1%, to $29.2 million, which was attributed to a decline in net transaction and clearing fees, partially offset by an increase in access and capacity fees.
“In the second quarter, Cboe reported its ninth consecutive quarter of double-digit, year-over-year net revenue growth,” said Edward T. Tilly, chairman and chief executive officer at Cboe Global Markets.
“Our strong results were again driven by our derivatives and data and access solutions categories […] Overall, the first half of 2023 is off to an exceptional start, and I look forward to building upon these trends in the second half of the year and beyond.”
Over the last quarter, Cboe Global Markets expanded its volatility index suite with the launch of its 1-day volatility index (VIX1D). Designed in house by Cboe Labs, the new index measures the current day’s expected market volatility of the S&P 500 Index.
More recently, Cboe’s European equities exchange launched new sweep order types to bolster liquidity targeting for traders. The new sweep order types allow participants to access the dark, periodic auction and lit order books without the need to submit multiple orders.